The first year under the Income-tax Act 2025: what changes for your filings
The Income-tax Act 2025 replaced the 1961 Act on 1 April 2026. Rates, deadlines and deductions are unchanged in substance, but sections are renumbered, previous year and assessment year become one tax year, and notices now cite the new numbering. Here is what it means for this year's filings.
What changed and what did not
The new Act is a rewrite for readability, not a rate change. The new regime slabs stay at nil up to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above, with the rebate making tax nil up to ₹12 lakh and the ₹75,000 standard deduction for salaried taxpayers. Corporate rates of 25% and the 22% option stay. Presumptive limits under the old 44AD and 44ADA stay. The familiar section numbers (80C, 80-IAC, 44AD, 234F) now map to new numbers, and the two-year language of previous year and assessment year is replaced by a single tax year. Returns for tax year 2025-26, being filed this month, are still under the 1961 Act.
What to watch in your paperwork
Notices, challans and forms issued from April 2026 cite the 2025 Act's numbering, so a TDS certificate or a demand notice may quote a section you do not recognise; the portal carries a mapping table. Deduction claims, tax holiday elections under the old 80-IAC and ESOP deferrals continue under their new numbers without fresh applications. Software and templates that hard-code section numbers, including salary structures and investment declarations, should be updated before the Q3 TDS return. Where a document must cite a section, we quote both numbers this year.
The dates still ahead
Nothing moves. Q2 TDS returns are due 31 October, the third advance tax instalment (75% cumulative) on 15 December, the GST annual return GSTR-9 for 2025-26 on 31 December for turnover above ₹2 crore, the Q3 TDS return on 31 January, and the final advance tax instalment on 15 March. The first return under the new Act, for tax year 2026-27, will be due on 31 July 2027 for non-audit cases and 31 October 2027 for audit cases. Our Income Tax team is filing on both Acts this year and can review any notice that cites the new numbering.